Trade of the Week

Amazon’s Cloud Strength and AI Strategy

Markets retreated yesterday, officially ending hopes for a Santa Claus rally unless Friday brings a significant surge. While the seasonal rally didn’t materialize, historical data suggests a strong January could follow, setting a bullish tone for the year. Despite concerns over high valuations in the tech sector, the resilience of industry leaders like Amazon underscores their critical role in shaping market dynamics.

Betting on Apple: The AI Boom and Year-End Market Surge

Markets opened lower post-Christmas with the Dow down 100 points and the VIX spiking 8%, yet optimism for a Santa Claus rally remains intact. With strong fundamentals like 3%+ GDP growth and robust consumer spending, 2025 is poised for another roaring year. The rise of AI solidifies the dominance of top tech giants, presenting compelling opportunities in Apple and other market leaders.

Market Reaction Creates Bullish Setup for Nike

We thrive on navigating market volatility driven by uncertain catalysts like Fed meetings, earnings reports, and geopolitical events. Yesterday, the market overreacted to Powell’s 25bps rate cut and the “dots of doom,” signaling fewer rate cuts in 2025 than expected. Despite the sell-off, we remain bullish, seeing a strong economy ahead. We’re recommending high-risk trades like VIX puts and NKE calls as volatility subsides.

ExxonMobil vs. Saudi Aramco: The Fight for Global Energy Supremacy

Exxon Mobil stands out as America’s energy champion, leveraging strategic acquisitions and cost efficiency to dominate the late-stage fossil fuel industry. With upstream investments in shale and Guyana, alongside a focus on profitability, Exxon positions itself as a resilient leader against competitors like Saudi Aramco.

Buy Bitcoin, Short Gold: Bitcoin Hits $100,000

Bitcoin has surpassed the $100,000 milestone, marking a transformative moment for cryptocurrency. The asset class, once seen as the “Wild West” of finance, is gaining legitimacy and reshaping its narrative. As cryptocurrencies integrate into the global financial system, Bitcoin’s rise signals a new chapter in digital assets, presenting a rare opportunity for innovation and wealth creation.

Applied Materials: An AI Picks and Shovels Play

Broadcom is Underappreciated for It’s Artificial Intelligence Potential

Broadcom, a powerhouse in semiconductors, stands poised to benefit from the AI revolution with high-margin products, a robust R&D foundation, and revenue stability from infrastructure software. This article explores Broadcom’s unique role in AI and its strong long-term uptrend, signaling potential for significant growth into 2025 and beyond.

Go Long Adobe Well Ahead of Earnings

Adobe (ADBE) may not be the flashiest tech stock, but its robust fundamentals and powerful competitive advantage make it a solid play. With consistent double-digit growth, a loyal customer base, and impressive profitability metrics, Adobe stands tall among tech giants. As we head into the year’s final quarter, we’re betting on Adobe’s resilience to drive a strong earnings beat, fueled by seasonal tailwinds and economic momentum.

Mastercard Poised to Outperform with US Economic Growth Over 3%

Mastercard, part of the lucrative credit card duopoly, is poised for growth as it continues to gain market share and invest in technology. With strong fundamentals, effective capital allocation, and consumer spending on the rise, Mastercard is well-positioned to benefit from the current economic expansion and holiday season. As the U.S. economy grows, credit reliance is expected to increase, making Mastercard a top pick for long-term growth.

Gold Fades in the Heat of a Bull Market: A Contrarian Opportunity

Gold has reached all-time highs recently. We believe its appeal is waning as the current bull market heats up. Gold doesn’t pay dividends or grow earnings, and with inflation under control and a strengthening dollar, we see a strong case for shorting it. As the market grows on skepticism and moves toward optimism, we expect investors to shift from Gold to more lucrative assets. This trend, combined with favorable economic conditions, presents a prime opportunity to capitalize on Gold’s potential decline.